Applied Materials (NASDAQ:AMAT) Shares Gap Up - Should You Buy?

Shares of Applied Materials, Inc. (NASDAQ:AMAT - Get Free Report) gapped up before the market opened on Thursday . The stock had previously closed at $178.38, but opened at $185.80. Applied Materials shares last traded at $185.01, with a volume of 1,371,347 shares trading hands.

Analyst Upgrades and Downgrades

A number of analysts recently commented on the stock. Barclays dropped their price target on shares of Applied Materials from $225.00 to $200.00 and set an "equal weight" rating on the stock in a research note on Friday. Susquehanna dropped their price target on shares of Applied Materials from $190.00 to $170.00 and set a "neutral" rating on the stock in a research note on Monday, November 11th. Wells Fargo & Company dropped their price target on shares of Applied Materials from $210.00 to $200.00 and set an "overweight" rating on the stock in a research note on Monday, January 13th. TD Cowen lowered their target price on shares of Applied Materials from $250.00 to $230.00 and set a "buy" rating on the stock in a research note on Friday, November 15th. Finally, The Goldman Sachs Group lowered their target price on shares of Applied Materials from $230.00 to $202.00 and set a "buy" rating on the stock in a research note on Friday, January 10th. One research analyst has rated the stock with a sell rating, seven have given a hold rating and sixteen have given a buy rating to the company's stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $217.41.

Applied Materials Stock Performance

The company has a current ratio of 2.51, a quick ratio of 1.87 and a debt-to-equity ratio of 0.29. The company's fifty day moving average is $173.10 and its 200 day moving average is $191.30. The company has a market cap of $156.27 billion, a P/E ratio of 22.31, a price-to-earnings-growth ratio of 1.75 and a beta of 1.53.

Applied Materials (NASDAQ:AMAT - Get Free Report) last released its earnings results on Thursday, November 14th. The manufacturing equipment provider reported $2.32 EPS for the quarter, beating the consensus estimate of $2.19 by $0.13. Applied Materials had a net margin of 26.41% and a return on equity of 39.26%. The company had revenue of $7.05 billion for the quarter, compared to analyst estimates of $6.96 billion. During the same quarter last year, the firm earned $2.12 EPS. The firm's quarterly revenue was up 4.8% compared to the same quarter last year. As a group, equities analysts predict that Applied Materials, Inc. will post 9.37 earnings per share for the current fiscal year.

Applied Materials Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, March 13th. Investors of record on Thursday, February 20th will be issued a dividend of $0.40 per share. This represents a $1.60 annualized dividend and a dividend yield of 0.83%. The ex-dividend date is Thursday, February 20th. Applied Materials's dividend payout ratio is currently 18.58%.

Institutional Investors Weigh In On Applied Materials

Large investors have recently added to or reduced their stakes in the company. Clean Yield Group bought a new stake in Applied Materials in the 3rd quarter worth $33,000. First PREMIER Bank lifted its position in shares of Applied Materials by 326.3% in the 3rd quarter. First PREMIER Bank now owns 162 shares of the manufacturing equipment provider's stock worth $33,000 after purchasing an additional 124 shares during the period. MidAtlantic Capital Management Inc. purchased a new stake in shares of Applied Materials in the 3rd quarter worth about $37,000. DT Investment Partners LLC lifted its position in shares of Applied Materials by 592.9% in the 3rd quarter. DT Investment Partners LLC now owns 194 shares of the manufacturing equipment provider's stock worth $39,000 after purchasing an additional 166 shares during the period. Finally, Dunhill Financial LLC lifted its position in shares of Applied Materials by 61.4% in the 3rd quarter. Dunhill Financial LLC now owns 213 shares of the manufacturing equipment provider's stock worth $43,000 after purchasing an additional 81 shares during the period. Institutional investors own 80.56% of the company's stock.

About Applied Materials

Applied Materials, Inc engages in the provision of manufacturing equipment, services, and software to the semiconductor, display, and related industries. The company operates through three segments: Semiconductor Systems, Applied Global Services, and Display and Adjacent Markets. The Semiconductor Systems segment develops, manufactures, and sells various manufacturing equipment that is used to fabricate semiconductor chips or integrated circuits.